Prabowo to Ease Local Content Rules as Aismoli Calls for Stricter Measures

KatadataOTO – United States import tariffs on a number of countries take effect today, Wednesday (09/04). The policy is predicted to bring a number of negative impacts.

Following this, President Prabowo Subianto is looking for ways to anticipate the negative effects of Donald Trump's new regulations.

One of them is by instructing ministers to make the TKDN (Local Content Requirement) rules more flexible.

“We have to be realistic, if TKDN is forced, we will end up being less competitive. I strongly agree that TKDN should just be flexible,” said Prabowo Subianto on the official website of the Presidential Secretariat.

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Furthermore, the number one person in Indonesia assesses that the currently applicable TKDN regulations seem too forced.

As a result, investors are not looking at Indonesia. They then tend to be more interested in investing their money in other countries.

Therefore, Prabowo Subianto requested that the implementation mechanism of this TKDN be changed. For example, with the possibility of providing incentives.

“Please, my assistants, my ministers, be realistic. Just make the TKDN realistic,” he continued.

Meanwhile, regarding concerns about domestic product development, according to him, it can still be done in other ways.

For example, through the development of HR (Human Resources), especially in education, including science and technology.

On the other hand, Prabowo also intends to carry out deregulation or the removal of policies that are deemed no longer effective for economic development and the welfare of the people.

“I do intend to cut the convoluted and excessive licensing system. This has become our mission, it must be carried out,” Prabowo affirmed.

For your information, previously Aismoli (The Indonesian Electric Motorcycle Association) asked the government to tighten the TKDN regulations.

“This is to protect local producers from the potential onslaught of imported goods entering Indonesia,” said Budi Setiyadi, Chairman of Aismoli, in an official statement some time ago.

Budi stated that the government must protect domestically made products. And then prevent the dominance of imported electric motorcycles.

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“Not only from the policy side, government supervision in ensuring that TKDN rules are properly implemented by the industry also needs to be strengthened,” said Budi.

The Chairman of Aismoli stated that it is highly likely that other countries like China will look for alternative markets besides the United States.

“Indonesia, with its large population and strong purchasing power, is considered an attractive country,” Budi concluded.